RNFI Services IPO: A Strong Start with Retail Investors Leading the Charge

The RNFI Services initial public offering (IPO) opened to robust interest, with subscriptions beginning on Monday, July 22, and set to close on Wednesday, July 24. Priced between ₹98 and ₹105 per share with a face value of ₹10, the IPO offers at least 1,200 shares per bid, with additional shares available in multiples thereof.

Subscription Details

• The IPO has been segmented to cater to different types of investors:

• Qualified Institutional Buyers (QIB) can subscribe to up to 12,72,000 equity shares.

• Non-Institutional Investors (NII) have access to up to 9,54,000 equity shares.

• Retail Individual Investors (RII) can purchase up to 22,26,000 equity shares.

• Market Makers are allotted up to 3,84,000 equity shares.

RNFI Services, established in 2015, is a financial technology startup offering B2B and B2B2C solutions through an online platform and mobile app. The company specializes in providing financial, digital, and government-to-citizen (G2C) services across India. Its operations are categorized into business correspondent services, non-business correspondent services, full-fledged money changer services, and insurance brokerage.

Financial Performance

For the fiscal year 2024, RNFI Services reported revenues of ₹93,542.38 lakhs, an EBITDA of ₹1,923.88 lakhs, and a net profit of ₹996.07 lakhs.

IPO Subscription Status

On the first day, the RNFI Services IPO was subscribed 3.73 times. The retail portion saw substantial interest, being subscribed 6.57 times, while the NII portion was subscribed 2.08 times. As of 15:20 IST, the company had received bids for 1,66,10,400 shares against an offer of 44,52,000 shares, as per data from chittorgarh.com.

Grey Market Premium (GMP)

The current GMP for RNFI Services is +55, indicating that shares are trading at a ₹55 premium in the grey market, as reported by investorgain.com. This suggests an expected listing price of ₹160 per share, which is 52.38% above the IPO price of ₹105. Analysts at investorgain.com have noted a GMP range from ₹38 to ₹55 over the past seven sessions, indicating a promising listing.

IPO Details

The RNFI Services IPO aims to raise ₹70.81 crore through a fresh issue of up to 6,744,000 equity shares. The proceeds will support various objectives, including working capital requirements, capital expenditure, technological infrastructure expansion, inorganic growth via acquisitions, and other strategic initiatives.

Leadership Insights

Ranveer Khyaliya, Chairman & Managing Director of RNFI Services Ltd, remarked, “It’s a significant milestone in our journey as we prepare for our IPO. Since our inception, our mission has been to bridge the financial gap in rural India by providing accessible and innovative financial technology solutions. Our dedicated team and extensive network have enabled us to reach over 28 states and 5 union territories, processing more than 115 lakh transactions monthly.”

He added, “Our IPO marks a new chapter in our journey. It is an opportunity to further our mission of financial inclusion and technological innovation. The funds raised will be used to enhance our service offerings, expand our network, and continue our commitment to empowering rural India. We are excited about the future and the potential to make a greater impact on the financial landscape of India.”

In Conclusion, The RNFI Services IPO has garnered strong interest from investors, particularly retail investors, highlighting confidence in the company’s growth prospects and financial health. With substantial subscriptions and a positive GMP, RNFI Services is poised for a promising debut on the stock market. Investors are advised to consult with certified experts before making any investment decisions.

Disclaimer: The views and recommendations expressed in this article are those of individual analysts, experts, and broking companies, not of FinBrook. Investors should seek advice from certified experts before making any investment decisions.